I spent four years as Forbes' Girl Friday, which to me meant doing a little bit of everything at once. As a member of the Forbes Entrepreneurs team, I looked at booming business and startup life with a female gaze. I worked on the PowerWomen Wealth and Celebrity 100 lists, keeping my ears pricked and pen poised for current event stories--from political sex scandals to celebrity gossip to international affairs. In 2012 I helped to put two South American women on the cover of FORBES Magazine: Modern Family star Sofia Vergara (the top-earning actress on U.S. television) and Brazilian President Dilma Rousseff, who is transforming the BRIC nation into an entrepreneurial powerhouse. Prior to Forbes I was at the Philadelphia CityPaper, where I learned more than any girl ever needs to know about the city's seedier trades. I studied digital journalism at The University of The Arts.
I left Forbes in November, 2013, to pursue other interests on the West Coast.

Beyoncé's $50 Million Pepsi Deal Takes Creative Cues From Jay Z

A $50 million deal reported by the NYTimes today between Pepsi and Power Woman Beyoncé Knowles could be a portent of what’s coming in the advertising arena of celebrity endorsements as artists angle for more creative control. Or she could just have taken a page from her own husband’s handbook.

The unconventional multi-year deal is said to include standard advertising like commercials and print ads as well as a “fund to support the singer’s chosen creative projects.” These projects, according to the Times’ sources, are as of yet undefined but could include events, photo shoots or “almost anything else” that Beyoncé, the actress, songstress and entrepreneur who last year pulled in $40 million, deems a creative partnership opportunity.

“Pepsi embraces creativity and understands that artists evolve,” Beyoncé told The Timesin a statement. “As a businesswoman, this allows me to work with a lifestyle brand with no compromise and without sacrificing my creativity.”

But as the deal was just announced this morning, it remains to be seen what role Beyoncé’s creative evolution will play in Pepsi’s marketing efforts in coming years. “They’re saying all of the right things,” says David Schwab, head of Octagon First Call’s celebrity acquisition unit which partners celebrities with branded opportunities and partnerships who notes that from the outset, the positioning of a celebrity deal can be nearly as important as the deal itself.

“Who talks about deals?” he says. “The press doesn’t get excited if a celebrity’s just doing a commercial. A partnership, though. That makes a great headline.”

And the unique positioning of a collaboration like this, while unorthodox, he says, is hardly unprecedented—even within the Knowles-Carter household. In a strikingly similar partnership made in 2006, husband Jay-Z was named named “co-brand director” for Anheuser Busch beer Bud Select. the company noted at the time that the rapper would “participate in Budweiser Select planning sessions to provide his unique spin, thoughts and insights on various brand programs.”

Sound familiar?

“Both Pepsi and Beyoncé’s team have done a great job of positioning the partnership to get people talking about it right away before any real marketing materials are in the public eye,” says Schwab, but just how much creative control and collaboration goes down will unfold further down the road. “I wouldn’t be surprised if she’s sitting in a board room with the Pepsi creative department talking about her fans and her vision,” he says, “But you can’t know what’s going to come out of that meeting.”

As far as Pepsi’s talking about this week, ceding control to Beyoncé is all about the fans. “Consumers are seeking a much greater authenticity in marketing from the brands they love,” Brad Jakeman, president of PepsiCo’s global beverage group told The Times. “It’s caused a shift in the way we think about deals with artists, from a transactional deal to a mutually beneficial collaboration.”

The multi-year campaign was estimated at $50 million, most going towards media placements and promotions around the world, and the remainder split roughly equally between Beyoncé’s fee and the “creative development fund.”

“It’s not the creative control that makes this deal unique,” says Schwab, who adds that he even hesitates to use the word unique given Beyoncé’s husband’s history of creative collaborations. “The big chance here is the scale of a global campaign like this one, from a concert tour to a multimedia campaign to all of these other potential so-called creative activities. They’re betting a lot on Beyoncé—so it’s no wonder they’re looking for her input on how to make it work.”

Lucky for Pepsi–whose history of using celebrity spokespeople from Sofia Vergara to Michael Jackson to Nikki Minaj is well-established–Beyoncé is at the top of her game. Despite taking some time off to give birth to daughter Blue Ivy in 2012, the 31-year-old’s last massive tour took her from Brazil to Australia to Ireland in a 108 show whirlwind that grossed $119.5 million. Her fan base is far-reaching and her creative clout is strong—her directorial debut takes place Feb. 16, 2013 on HBO with the premiere of an untitled autobiographical documentary just weeks after she headlines the Pepsi-sponsored Superbowl Half-Time show.

“It’s not easy to strike a deal with a celebrity of Beyoncé’s caliber,” Schwab says. “There’s a lot on the table and both sides have a lot of work to do. It —is at the top of her game and not easy to strike a partnership like this with.” Both sides, he says, have a lot of work to do in the wake of a promising press blitz like this one.

What the collaboration truly hinges on is this, he says. “Beyoncé knows how to sell Beyoncé and Pepsi knows how to sell Pepsi. We’ll see success only if those two marketing minds think alike, and it will certainly work best if they both go into the deal knowing that.”

Post Your Comment

Post Your Reply

Forbes writers have the ability to call out member comments they find particularly interesting. Called-out comments are highlighted across the Forbes network. You'll be notified if your comment is called out.

My mothers neighbour is working part time and averaging $9000 a month. I’m a single mum and just got my first paycheck for $6546! I still can’t believe it. I tried it out cause I got really desperate and now I couldn’t be happier. Heres what I do, www.Ask22.Cℴm

Good for her I can’t think of another artist more worthy. She’s hard working, talented and definitely a driving force in the industry. More importantly she has a good positive image and seems to live a healthy family oriented lifestyle. One word…Class!

You can stay with Jay, just give me one (1) night (8hrs) per month!! I swear I will make you ask me for more!!!! You are so gorgeous, the most beautiful woman in the world. I know you don’t need the money, BUT I’M WILLING TO PAY!!!!! LOL!!!! you sexy M.F. er!!

What the hell are you talking about? How do you know? Jay Z and Beyonce give plenty to charity look it up before you start drawing conclusions. Even if people decide not to give THEIR money to charity it’s THEIR money. Nobody should be forced to give anything they should give it out of the goodness of their own heart. I give my time and money to charity all the time but it’s because I want to! When was the last time you helped your community?